LMNP means : Loueur en Meublé Non Professionnel. (Non professional, furnished rental property)
This system concerns the rental of a traditional property or the rental of a property within a service residence such as residences for seniors, EHPAD (hospice) student residences, tourist residences, rentals in guest houses or rural lodgings, seasonal rentals.
In 2020, with mortgage rates remaining relatively low, you are in the best
relatively low, you are in the best conditions to invest
conditions to invest and prepare for your retirement
thanks to a device which presents many
You have no impact of depreciation
in the calculation of the capital gain, within the framework of
2. You benefit from very advantageous tax rebates.
3. You benefit from a better profitability than in bare rental.
4. You are assured of having a permanent rental income
income, especially for managed residences.
5. You don’t have to worry about managing the property.
6. You have the possibility to depreciate the property as well as
furniture and equipment.
1. No rent cap.
2. No means test for tenants.
The VAT is paid at the time of purchase but is refunded later. Sometimes, the promoter can bear the VAT for you. They will then be in charge of getting reimbursed.
The accountant in charge of the management will recover the VAT.
Properties that are in managed structures are prized. They sell in 8 weeks on average.
Your income will increase but thanks to the game of depreciation, you will not pay additional taxes for a period of 12 to 20 years.
The main specificity of the real system is to be able to depreciate your assets in addition to depreciating your large expenses.
The depreciation is an accounting depreciation which will be charged on your rents as a “fictitious” expense each year. It is called a “phantom” expense because you will not actually disburse it, it will simply be charged to income and therefore reduce your taxable base
You have no control over the tenants.
2. The dwelling occupied as a principal residence must have a minimum duration of 1 year.
3. You cannot be registered in the RCS as a Professional Furnished Lessor (LMP).
4. The rental income must not exceed 23 000 per year and must not represent more than 50% of the global income of the investor
Yes, regardless of the occupancy of the residence, your rent will be collected.
No. The manager in charge of the residence takes care of everything. You will not be in contact with the tenant. They will not have your contact information.
The manager takes care of everything. It is completely transparent for you. There are no additional fees.
You will pay a property tax because you will be the owner of a property.
On a few rare programs, it is borne by the operator.
You need to be a “particulier.” Meaning you are not a company or an agency but an individual.
France is experiencing significant population growth. The state cannot afford the investments necessary for this growth. It therefore proposes to individuals to invest in the construction of housing to meet the increased demand for housing.
To benefit from the advantages of the PINEL law, here are the essential elements to know:
Maximum price: 5 500€/m2. This threshold is used in the calculation of the tax reduction. The law does not prohibit the purchase of a more expensive property. Beyond this threshold, only the part equal to 300 000€ will be considered in the tax calculation.
The tax reduction is proportional to the duration and limited to 300 000 euros of investment per tax household (whatever your mariage status)
There are resource conditions for the tenant:
Rents are capped
Possibility of renting to parents and children (conditions required -> the same as for a normal tenant, therefore subject to resource conditions and capped rent)
- The tax reduction applies to the year of completion of the property, on the income of the current year and without rate time limits. In other words, regardless of the date of delivery of the property in the year, the tax reduction is acquired entirely over the year.
The law limits this type of purchase to 2 homes per year per tax household.
The rate of reduction varies with the duration of the commitment (minimum rental period):
12% for 6 years; i.e. maximum 36,000€ of tax rebate (300k*12/100)
18% for 9 years, i.e. a maximum of €54,000 in tax savings
21% for 12 years; i.e. maximum €63,000 tax rebate
In order to be eligible for the PINEL program, the property must comply with specific construction standards to ensure that it is a BBC (Bâtiment Basse Consommation) building and complies with RT 2012 energy performance standards.
Only 6% of cities are eligible. Indeed, the supply and demand of housing is unequal on the French territory. Victorine Immobilier offers properties all over France in order to adapt to the wishes of its customers and has access to more than 230 developers on the territory.
The accommodation must meet the following criteria:
It must be unfurnished
used as the tenant’s main residence
Rented within 12 months of its acquisition or the date of completion of work.
The income of the tenants must be capped.
The caps vary according to the location
To know the zone of the city
The calculation formula takes into account 3 data: The living area
The ceiling of the rent per useful m²
Coefficient The coefficient is always: 0,7+19/surface
The coefficient cannot be higher than 1.2
The formula: Living area x rent ceiling per useful m2 x coefficient
The caps are set according to the geographical area and the composition of the tax household.
The administration is clear on the subject “since January 1, 2021, the reduction concerns only housing located in a collective building. It no longer concerns individual and suburban housing”.